Competences: This course aims to familiarize students with the tools leading the student to: - Understand the main concepts of game theory. - Create a coherent and logical framework to analyze cooperative and conflictive situations. - Learn how to use the tools that game theory provides to analyze economic situations in which there are strategic interactions among agents. - Apply this theory to many economics problems in the subjects of industrial organization, regulation, public economics, political economics, etc. Capacities: Game theory helps the student to learn how to: - Formalize economic problems. - Identify the proper model for the analysis of different situations of conflict. - Use game theory concepts for strategic analysis. Attitudes: The subject encourage the students to: - Analyze economic problems without prejudice, with precision and rigor. - Reason critically. - Learn autonomously. - Defend their point of view and evaluate the basis of other contrasting points of view.

The problem of interaction among many agents and its impact on decision making is presented. There is an introduction to the basic concepts of game theory and to the different types of games depending on the nature of interaction (static, dynamic or repeated) as well as on the type of information agents have (perfect or imperfect). The main equilibrium concepts are studied (Nash equilibrium, sub game perfect equilibrium and Bayesian equilibrium) with economic applications: noncompetitive markets, political competition, bilateral bargaining, auctions, voting systems and the problem of cooperation in repeated games.